Hummingbird announces potential buyer for Pasofino subsidiary

Aim-listed Hummingbird Resources has advised of an offer for a buyer to acquire its 53%-owned subsidiary Pasofino Gold for $75-million.

This represents a purchase price of $0.66, or C$0.91, a share.

Pasofino, which is headquartered in Toronto, Canada, signed an exclusivity agreement with a potential buyer following a strategic review process during which Pasofino engaged with multiple interested parties.

The offer grants the potential buyer an exclusivity period until November 7, which gives the buyer and financing partners time to do due diligence and garner necessary approvals.

Both companies aim to finalise a definitive agreement in the fourth quarter of the year; however, there are no guarantees that such an agreement will be reached with the potential buyer.

Meanwhile, Pasofino intends to undertake interim financing to secure funds for advancing the Dugbe gold project’s feasibility study optimisation initiatives. The project, in Liberia, currently has 2.7-million ounces of reserves, a 14-year mine life and a low cost profile.

Hummingbird continues to operate the Yanfolila gold mine, in Mali, as well as the Kouroussa gold mine, in Guinea.